The Reserve Bank is currently facing a challenge in balancing inflation control with economic stability.

Recent data indicates that the economy is at risk of recession, with GDP per person decreasing by 1% over the past year.

Consumer spending and new home construction have slowed, contributing to subdued GDP growth.

Interest rate hikes by the Reserve Bank, coupled with factors like rising rents and constrained government spending, have contributed to a year-long economic deceleration.

The Reserve Bank's interest rate decisions are under scrutiny as they attempt to navigate the economy through these pressures.

Forthcoming stage 3 tax cuts may offer an economic stimulus, but concerns over increasing unemployment and underemployment remain.

Unemployment has risen to 4.1% from a low of 3.5% in February the previous year, impacting the economic and political outlook.